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Solana DEX Volume Plunges 72% Amid Decreasing Interest for Memecoins
- Solana’s DEX trading volume plummeted over 70% within a week, from US$3.3 billion to US$890 million, amid declining interest in memecoins, a decrease in network activity, and broader market uncertainty.
- Despite the drop in DEX volume, Solana’s TVL surged 261.5% in eight months, reaching US$4.7 billion, supported by strong performance from top protocols like Jito and Jupiter.
- SOL has exhibited high volatility, going back and forth between US$141 and US$150.
DEX trading volume on the Solana network has fallen significantly. The network experienced a decline of over 8%, while volumes on the Ethereum, Base, and Sui blockchains have increased by approximately 12%, 11%, and 77%, respectively during the weekly timeframe.
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Data from Artemis shows DEX trading volume on Solana went from US$3.3 billion (AU$5 bn) to US$890 million (AU$1,349 million) in less than seven days. The network’s daily active addresses also went from a peak of 2.4 million in mid-July to 1.6 million by early August.
The decline in active addresses could be partly driven by waning interest in memecoins. Data from The Block’s GMMEME Index shows an abrupt decline in interest in memecoins. The metric highlights tokens that have amassed significant community engagement and market presence.
Likewise, data from DefiLlama shows Ethereum leading in network trading volume with US$16.5 billion (AU$25 bn), followed by Solana with just over US$11 billion (AU$16.7 bn) and Base with US$5.4 billion (AU$8.2 bn).
Note that Ethereum also maintains a significant lead regarding DEX total value locked (TVL)—over US$6.44 billion (AU$9.8 bn) compared to Solana’s US$1.74 billion (AU$2.6 bn).
Uncertainty Grips the Market
Solana’s TVL remains high, at just above US$4 billion (AU$6 bn), thanks to the elite conglomerate of decentralised applications keeping the momentum going. Some of the top protocols on Solana have recorded double-digit gains in the last seven days, including Jito, Kamino Finance, marginfi, and Jupiter.
Zooming out, Solana’s TVL has grown considerably —from US$1.3 billion (AU$1.9 bn) in January of this year to US$4.7 billion (AU$7.1 bn) today, a 261.5% increase in eight months.
Regarding SOL, its price has been experiencing higher levels of volatility today and in the past few weeks.
By August 12, the price of SOL went from US$141 (AU$214) to US$147 (AU$223.1) and retraced back to US$142 (AU$215) in less than five hours. Just a few hours later, it rebounded to US$150 (AU$227.7)… just to drop to $142 again.
One could argue that SOL has at least recovered some of the lost ground in the weekly timeframe. But the last couple of days weren’t particularly helpful for SOL’s price, as Solana developers revealed they had patched a major vulnerability that could have resulted in another network outage.
Yet, SOL is still down 20% in the past two weeks. Looking at the bigger picture, most large-cap currencies have experienced significant levels of volatility. Considering the total crypto market cap, it’s currently at US$2.11 trillion (AU$3.2 tn), an increase of 2.3% in 24 hours, with BTC and ETH up 1.1% and 6.1% in the same period.
However, uncertainty has a tight grip on the market. The Fear & Greed Index is currently in the Neutral zone at 51.
Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
